India’s hospitality industry is riding a wave of transformative growth, as outlined in the “India Hospitality Industry Overview 2024” report by HVS ANAROCK. The sector achieved an impressive 62% increase in hotel brand signings, with a record-breaking addition of 47,000 rooms—the highest ever in a single year. This reflects growing confidence among investors and operators.
Domestic tourism remains the backbone of this momentum, supported by a robust GDP growth of 6.5% and increased consumer spending. Big-ticket events, such as grand destination weddings and blockbuster live concerts, boosted occupancy rates to 63-65%, with Average Room Rates (ARR) soaring to ₹7,800–₹8,000.
Simultaneously, Tier 2, 3, and 4 cities are emerging as new hotspots for hospitality development, catering to the burgeoning demand for economy and midscale accommodations. These segments are critical as India targets an ambitious goal of 1.1 million branded hotel rooms by 2047.
